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City analysts believe that Specialist Energy Group (LON:SEGR) shares are significantly undervalued and the company is set for above-average growth. A number of analysts published research on SEG after it announced a new £5 million fundraising this morning. Both finnCap and Northland Capital gave upbeat views on the AIM-listed engineering firm. SEG is issuing up to 10.4 million new shares to new and existing investors at 48 pence each. The cash will support SEG’s growing exports business to India, as well as funding the expansion of its US operation and allowing greater flexibility to fund new orders. "We are delighted by the strong interest that has been shown by new and existing institutional investors in the placing,” chairman John May said. “Not only does it allow the group to continue expanding but it clearly strengthens our balance sheet and should facilitate the move to more flexible banking arrangements." In a note to clients finnCap analyst David Buxton said SEG is an undervalued play in late-cycle, traditional and nuclear power generation. The analyst highlighted that the group has strong overseas sales prospects, particularly in India and China, and its gross margins are gradually improving. “The valuation stands at a significant discount to most other providers of power generation equipment and subsea motors,” Buxton said. Buxton believes that SEG’s primary business - the Hayward Tyler subsidiary – is set to benefit from opportunities in both emerging and mature markets. In China and India the group can benefit as the nations build new nuclear power stations while ageing western thermal and nuclear power stations are in need to be replaced or overhauled. “We see considerable opportunities in the energy sectors for the Hayward Tyler subsidiary over the next few years,” Buxton said. He adds: “The shares responded to decent interims and the 10% Indian stake (McNally Bharat Engineering is a large shareholder), but continue to trade at a significant discount to the peer group.” Northland Capital - formerly Astaire Securities - analyst Simon Miller emphasised that the new funds would help support SEG’s efforts to expand the business. The analyst noted that a potential new site for its North American nuclear-focused operations has now been identified, and once complete and ‘stamped’ it could almost double Hayward Tyler's current footprint. “The expansion of the nuclear focused business is also timely,” Miller said, “as a greater reliance on nuclear power is increasingly seen as part of the solution to both energy security and climate change.” He adds: “The company has been steadily improving revenues and margins through the course of the year.” Specialist Energy was formed in January 2010 when Southbank UK reversed into AIM-listed shell Nviro Cleantech, ho

19th October 2010 Analyst: Philip Morrish Email: philip.morrish@gecr.co.uk Tel: 0207 562 3362 1Spatial* - Reverse Take-Over of IQ and 1000-1 Share Consolidation Complete: Buy at 71.5p with a 123p Target Price Key Data EPIC SPA Share Price 71.5p Spread 68p - 75p Total no of Shares 21,205,291 million Market Cap £15.16 million Net Cash c £1 million Market AIM Website www.1spatial.com Sector Software & Computer Services Contact Nic Snape Chief Executive 01223 433445 This morning 1Spatial completed the reverse takeover of AIM shell IQ Holdings and also undertook a 1,000 for 1 share consolidation, thus lifting the thriving enlarged group out of the ranks of the penny shares at a stroke. 1Spatial is a well developed and focussed location based software business with net cash and which is profitable. The geospatial market it targets is already worth $2.65 billion and grew at 38.4% between 2006 and 2010 and we expect that growth to continue. We value the group on an EV/EBITDA basis. Hence while the market capitalisation, at 71.5p, us £15.16 million the Enterprise Value is c £16 million which is which is 15 times the reported EBITDA for the year to June 30th 2010 of £1.065 million. However, we estimate that by the end of the financial year to 30th June 2012, the group will have increased its net cash to £4.182 million, which opens up the potential of the group paying a dividend as early as next year. We regard an EV/EBITDA multiple of around 10 times as undemanding for a company which has cash, is cash generative and which is increasing its profits and earnings rapidly. As such we formally start our coverage of 1Spatial, at 71.5p, with a target price of 123p and a stance of buy. Forecast Table Year to 30 June Sales ( £million) Pre-tax Profit ( £million) Earnings per share (p) Price Earnings Ratio (x) Dividend (p) Yield (%) 2008A 7.947 0.24 0.4 200 0.0 0.0 2009A 8.403 0.303 1.3 61.5 0.0 0.0 2010A 8.008 0.073 0.9 88.9 0.0 0.0 2011E 8.508 0.675 5.4 14.8 0.0 0.0 2012E 9.785 1.51 8.3 9.64 0.0 0.0 Source: Growth Equities & Company Research *1Spatial is a corporate client of Rivington Street Holdings (RSH) the ultimate owner of GE&CR. The SF t1ps Smaller Companies Growth Fund which is managed by another Rivington Street Holdings subsidiary owns shares in 1Spatial, as does RSH. This research note cannot be regarded as impartial as GE&CR has been commissioned to produce it by 1Spatial, it should be regarded as a marketing communication. The information in this document has been obtained from sources believed to be reliable, but cannot be guaranteed. Growth Equity & Company Research is owned by T1ps.com Limited which is commissioned to produce research material under the GE&a

Buy Discovery Metals at 45.5p Tipped SATURDAY 13TH MARCH An exclusive tip from Scarlett Moore of Sharecrazy's Premium Service First tipped at 22.5p in May 2008 Discovery Metals has been one of my most successful performers. So I think its about time for an update on my favourite copper marvel. As a reminder, Discovery Metals is an AIM listed, ASX listed and Botswana Stock Exchange listed minerals exploration company. Its main focus is on the Boseto Copper Project, a wholly owned asset located in Botswana which is currently nearing the end of a bankable feasibility study. At Boseto the company has a mineral resource of 60.4 million tonnes (Mt) at 1.4% copper and 19.5 grammes per tonne of silver. This is made up of indicated resources of 7.8 Mt at 1.5% copper and 22.8 g/t of silver, and an inferred resource of 48.7 Mt at 1.4% copper and 18.7 g/t of silver. Boseto is currently Discovery's main focus but the company also has a second project in Botswana, the Dikoloti Nickel Project. Dikoloti comprises of four prospecting licences that cover 612 square kilometers. The project currently has an inferred mineral resource of 4.1 million tonnes but is currently on the back burner as Boseto is developed. In its report for the three months to 31st December 2009 the company informed investors that the bankable feasibility study at Boseto remains on track for completion in March his year. 80% of the work on the study has been completed and an Environmental and Social Impact Assessment, which has been submitted to the local government, had not revealed any risks or mitigated impacts that would prevent the development of the interest. At the end of December 2009 the firm had A$17.6 million (GBP9.8 million) in cash. The economics for the project estimate that, on the basis of a copper price of US$2/lb, Boseto will deliver an internal rate of return (IRR) of 18% with a net present value (NPV) of US$116 million (GBP74.4 million). At a copper price of US$4/lb the IRR rises to 57% and the NPV to US$426 million (GBP273 million). That demonstrates that the project is highly geared to the copper price, which as I write is currently at around $3/lb on the London Metal Exchange. Operating costs over the targeted initial project life of 10 years are expected to average US$1.04/lb, with capital expenditure amounting to $150 million. Away from Boseto, survey and sampling work has commenced on the Dikoloti nickel project. During the quarter Discovery Metals entered into a joint exploration agreement with the Japan Oil, Gas and Metals National Corporation (an entity comprising several government agencies tasked with securing a stable supply of natural resources for Japan). Under the deal the miner remains the operator of the project while its Asian partner will provide A$3 million in funding for exploration activity on the project in exchange for a 60% interest in the joint-venture. *The value of investments can go down as well as up. Past pe

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